Buying gold jewellery on Dhanteras? How to cut the making charges on your bill

Many people buy gold on Dhanteras. Some buy coins, others jewellery. While buying jewellery, most people only ask the jeweller for the 22-carat or 24-carat rate and pay whatever final bill the shopkeeper hands over. But the price of jewellery is not just the gold rate. Making charges and GST are added on top, and together they raise the price considerably. Paying attention to these can save thousands of rupees.

First, understand what these charges are. The amount is levied for the labour of making the ornament and the cost of the design. Every jeweller's charge is different. Some charge per gram, others charge a percentage of the gold's value. It is therefore necessary to understand the arithmetic before buying. Once you do, you can save a good deal on charges.

Jewellers levy the charge in two ways. The first is a fixed amount per gram. Suppose a jeweller charges Rs 300 per gram for making and you buy 8 grams of jewellery. You will pay Rs 2,400. In the second method, the jeweller charges a fixed percentage of the gold's value as making charges. Suppose the gold in 8 grams of jewellery is worth Rs 40,000 and the making charge is 12%. You will then pay Rs 4,800 as making charges.

Here is another example. Suppose you are buying 8 grams of jewellery and 10 grams of gold costs Rs 50,000. The 8 grams of gold then costs Rs 40,000. If the making charge is Rs 2,400, the total is Rs 42,000. If the charge is Rs 4,800, the total comes to Rs 44,800. The method of levying the charge thus directly affects the bill.

So how can the charge be reduced? First, check rates at two or three shops before settling. The making charge can differ from one jeweller to another even for jewellery of the same design or weight, so compare prices in at least two or three shops before buying.

Second, compare fixed-amount and percentage-based charges. Do not just ask for the making charge. Find out also whether it is per gram or a percentage of the gold's value. Work out both before deciding.

Third, choose lightweight and machine-made designs. Jewellery with fine or heavy craftsmanship can carry a higher making charge. If you want to buy at a lower price, look at plain or machine-made designs.

Fourth, make full use of festival offers. Many jewellers offer discounts on making charges during Dhanteras and Diwali. But do not buy on the discount alone. First check the total bill and see how much you actually save after the discount.

Fifth, if you are exchanging old gold for new jewellery, check the bill carefully. Ask the jeweller to give a separate calculation of the value of the old gold, the deduction on it and the making charges on the new jewellery.

Know also what to look for on the bill. Never pay without checking the bill after buying jewellery. It should clearly state the purity of the gold, the weight, the current gold rate, the making charge, the wastage and GST. If the jewellery has diamonds or other stones, ask separately for their weight and price. Also be sure to check the BIS hallmark and the six-digit HUID number. GST on jewellery bills is generally 3%. So even after getting a discount on making charges, check the final bill once.